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Chapter 380 Agreements
Chapter 380 of the Texas Local Government Code allows Texas municipalities to provide a grant or a loan of city funds or services to promote economic development.  A Chapter 380 development agreement bypasses the need for upfront government incentives and kicks in only when a project is operating, thereby avoiding the prospect of a failed development taking incentive dollars.

Under a Chapter 380 agreement, a developer and taxing body negotiate a contract to provide sales tax incentives in return for the project meeting performance benchmarks.  The agreement should help the business offset some costs associated with construction and infrastructure.

Projects will be evaluated individually.  The maximum sales tax rebate granted, by law, will be 50%.  The rebate must be put into approved infrastructure improvements on the property.

For a copy of the Chapter 380 application form in Word format, email or and a copy will be emailed to you.  A pdf version of the application form can be downloaded from this website.